The US tariffs were wielded, and the market was still hopeful, but Trump was very tough and China was also very tough in its countermeasures. On Monday, the global capital market plummeted, with European and American stock markets plummeting, East Asian stock markets plummeting, and the cryptocurrency market also plummeting, but Bitcoin was still "strong" and remained around $80,000.
Analysts at StarEx Exchange believe that if the global trade war breaks out with no one compromising, it will cause a long-term global economic recession and economic and trade chaos. Some experts even believe that "if goods don't cross the border, then the army will." Investors will flock to gold for risk aversion, and the capital market's response to this trade war will continue for a long time.
From the perspective of institutional funds, although there has been no net inflow into the Bitcoin ETF, there has not been a large outflow either, and there is a strong wait-and-see sentiment. The current large fluctuations in the market are more of an emotional game, and big funds are waiting for further developments in tariff policies.
Analysts at StarEx Exchange believe that if a trade agreement cannot be reached on April 9, market sentiment will collapse again. In the past two years, investors have been accustomed to buying stocks and cryptocurrencies on dips, and each time they rebounded and recorded good returns. Even if the market fell in March, capital poured into the stock market. Before the tariffs are officially implemented on April 9, if all parties announce that they have reached a trade agreement or make concessions, then it will be a good time to buy the bottom. However, if there is no trade agreement between China and the United States, and both choose to continue to escalate the confrontation, market sentiment may collapse again. Market sentiment is polarized, and panic has reached the level of March 2020, which means more volatility in the future.
Judging from the market, the trend of altcoins is extremely weak. Ethereum plummeted to the $1,400 mark and the rebound was weak. Bitcoin's market share further increased. In the absence of a large amount of funds pouring into the crypto market, the liquidity of altcoins is extremely low. The differentiation between Bitcoin and other cryptocurrencies is likely to further increase.
In terms of strategy, we should always pay attention to the dynamics of the tariff war. StarEx exchange analysts believe that the capital market has been prepared for the tariff expectations. If there is another negative impact that leads to a decline, it will be a bargain hunting opportunity in the short term. From a macro perspective, if the Federal Reserve does not release water to bring about liquidity easing, it will be difficult to see a trend bull market, so it is advisable to lock in profits every time it rebounds. Bitcoin's $70,000 is a strong support, because the holding costs of ETFs, MSTR and many large investors are all around $70,000. If the market falls again to around $70,000, you can enter the market to buy at the bottom.
